(A) Net worth of ₹ 500 crore or more
(B) Turnover of ₹ 1,000 crore or less
(C) Turnover of ₹ 1,000 crore or more
(D) Net profit of ₹ 5 crore or more
Choose the correct answer from the options given below :
CSR Applicability Criteria Companies Act 2013
Section 135 of the Companies Act, 2013 mandates Corporate Social Responsibility (CSR) activities for companies meeting specific financial thresholds at the end of the immediately preceding financial year. These thresholds ensure that companies with substantial financial capacity contribute to societal welfare.
The key criteria for applicability are:
- Net worth of the company is $\text{₹} 500$ crore or more; OR
- Turnover is $\text{₹} 1,000$ crore or more; OR
- Net profit is $\text{₹} 5$ crore or more.
Analysis of Options
Let's evaluate the given options based on these criteria:
- (A) Net worth of $\text{₹} 500$ crore or more: This condition directly matches the first criterion. Thus, companies meeting this are subject to CSR.
- (B) Turnover of $\text{₹} 1,000$ crore or less: This condition does not meet the CSR threshold. The requirement is a turnover of more than $\text{₹} 1,000$ crore.
- (C) Turnover of $\text{₹} 1,000$ crore or more: This condition matches the second criterion. Companies meeting this are subject to CSR.
- (D) Net profit of $\text{₹} 5$ crore or more: This condition matches the third criterion. Companies meeting this are subject to CSR.
Conclusion on Qualifying Criteria
Based on the analysis, the conditions that qualify a company for CSR under the Companies Act, 2013 are:
- (A) Net worth of $\text{₹} 500$ crore or more
- (C) Turnover of $\text{₹} 1,000$ crore or more
- (D) Net profit of $\text{₹} 5$ crore or more
Therefore, options (A), (C), and (D) correctly represent the qualifying criteria.
Important Questions from Corporate Social Responsibility (CSR)
On which of the following principles is Andrew Carnegie's view on Corporate Social Responsibility, as reflected in his book, 'The Gospel of Wealth' based?
(a) Peter Principle
(b) Scaler Principle
(c) Charity Principle
(d) Steward Principle
Choose the correct option from the following:
What is the minimum prescribed net profit threshold for Companies to be required to undertake Corporate Social Responsibility activities under clause 135 of the Companies Act, 2013?
Which of the following changes was introduced in 2024 under the Companies Act amendments to enhance corporate social responsibility (CSR) transparency in India?
What is the 'Triple Bottom Line Approach' in CSR as mentioned in the passage?
Given below are two statements :
Statement (I): CSR is a holistic and integrated management concept whereby companies integrate their industrial and future objectives with their business objectives.
Statement (II): In this modern digitalized world, business are required to be mindful both in terms of what they are doing and how they are doing.
In the light of the above statements, choose the most appropriate answer from the options given below:
